Comparison of Syndicated Loan Markets with Bond Markets

  • Yener Altunbaş
  • Blaise Gadanecz
  • Alper Kara
Part of the Palgrave Macmillan Studies in Banking and Financial Institutions book series (SBFI)


Excessive borrowing by companies, households or governments lies at the root of almost every economic crisis of the past two decades, from Mexico to Japan and from East Asia to Russia. Following the financial crises in Mexico (1995) and South-East Asia (1997, 1998) the determinants of bond and loan financing to developing countries and the pricing of these instruments have been analysed widely in the academic literature (see, for instance, Hernandez and Rudolph, 1995; Eichengreen and Mody, 1997, 1998; Kamin and von Kleist, 1999; Chowdhry and Goyal, 2000). As stressed by Hale (2005), bonds and loans compete in the market for emerging market finance and it is important to gauge the relative importance of each instrument for planning purposes by lenders and borrowers alike. Indeed, while banks can cancel loans relatively easily — posing more potential liquidity threats to emerging market borrowers — bonds are harder to restructure, not least because of the dispersion of the bondholders.


Industrialize Country Bank Loan Bond Market Bond Price Bond Issue 
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Copyright information

© Yener Altunbaş, Blaise Gadanecz and Alper Kara 2006

Authors and Affiliations

  • Yener Altunbaş
    • 1
  • Blaise Gadanecz
    • 2
  • Alper Kara
    • 3
  1. 1.University of WalesBangorUK
  2. 2.Bank for international SettlementsSwitzerland
  3. 3.University of LeicesterUK

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